With Chinese imports and exports producing better-than-forecast results on Monday, the Australian Dollar has advanced against its most traded currency peers. This is in spite of trader risk aversion strategies playing a heavy part in market volatility. Mixed European data hasn’t been able to prevent the single currency trending lower as sentiment continues to wane amid stagnant economic growth.

A complete absence of European data on Friday was actually positive for the single currency. With traders focusing on economic disparity, the Euro managed to make significant gains against high-yielding and emerging-market currencies.

An International Monetary Fund report put a negative swing on trader risk sentiment on Friday. As a result the Australian Dollar tumbled against the majority of its most traded currency competitors. The report suggested that the sustained period of low interest rates has caused traders to take excessive risks on global markets which could lead to a fresh financial crisis.

The Euro to Australian Dollar exchange rate has fallen to a low today of 1.4477.

Friday’s European data has been relatively mixed and the single currency has generally depreciated against its rivals. The year-on-year German Wholesale Price Index declined from -0.6% to -0.9%. The monthly German Wholesale Price Index, however, appreciated from -0.2% to 0.1% in September.

Australian domestic data has been reasonably inconsequential on Friday. Credit Card Balances increased a little from A$49.4 billion to A$49.5 billion, and Credit Card Purchases declined from A$23.4 billion to A$22.3 billion.

However, Friday’s Chinese economic data has been much more influential over ‘Aussie’ (AUD) movement. Chinese Exports eclipsed the median market forecast of a rise from 9.4% to 12.0%, with the actual result advancing to 15.3%. Additionally, Chinese Imports exceeded the market consensus of a slight increase from -2.4% to -2.0%, with the actual result reaching 7%. A declination in China’s Trade Surplus wasn’t enough to throw off the Australian Dollar’s upward momentum.

Forecast for the Euro to Australian Dollar Exchange Rate

Later on Monday evening the Roy Morgan Weekly Consumer Confidence Index has the potential to spark changes for the Australian Dollar.

Tuesday’s Australian Business Confidence and the Chinese Foreign Direct Investment publications also have the potential to provoke ‘Aussie’ volatility.

Euro movement will largely be dictated by the German Economic Sentiment Survey on Tuesday. Those invested in the single currency will also be watching the Eurozone Industrial Production report, Eurozone Economic Sentiment Survey and the German Current Situation Survey.

The Euro to Australian Dollar exchange rate has reached a high today of 1.4604.